The People's Bank of China and the State Administration of Foreign Exchange issued the "Regulations on the Management of Overseas Loans by Domestic Enterprises"
The main content includes: First, including the RMB and foreign currency offshore lending business of domestic enterprises in unified management, facilitating enterprises to efficiently conduct domestic and foreign currency lending business according to the same business rules. Second, include the offshore lending of domestic enterprises in macro-prudential management, clearly linking the limit of offshore lending balance to their owners' equity, supporting enterprises in conducting business within the limit. Third, adjust the macro-prudential adjustment coefficient of offshore lending of domestic enterprises from 0.5 to 0.6, overall increasing the limit of offshore lending balance to better meet the funding needs of enterprises for cross-border operations. Fourth, clarify the management requirements and fund usage requirements for domestic banks and domestic enterprises conducting offshore lending business to effectively prevent risks.
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